The balance sheet and income statement for Davidson Yachts for 2014-2019 follow. The increase in net fixed assets in the recent 2 years is due to improvements in the building, paving of the parking area, and the purchase of the lift. Cash Accounts receivable Allowance for bad debts Inventory Other current assets Total current assets DAVIDSON YACHTS COMPANY Comparative Balance Sheet 2014 $ 24,060 100,265 (9,704) 35,809 December 31 2015 $ 22,766 2016 $ 19,535 103,714 (9,986) 57,664 13,774 2018 $ 44,492 105, 188 Property and equipment Accumulated depreciation Total assets Accounts payable Taxes payable Short-term loans 12,694 $163,124 262,995 (66,784) $359,335 $ 83,435 12,430 $187,932 282,808 (94,242) $376,498 $ 79,007 11,783 57,780 5,398 113,863 (9,224) 62,752 9,984 $ 196,910 300, 180 (123,692) $ 373,398 $ 64,306 12,580 38,383 4,449 60,676 Accrued payroll payable 6,027 Total current liabilities $162,568 $153,968 Long-term debt 158,973 Equity 37,794 Total liabilities and equity $359,335 173,188 49,342 $376,498 $ 119,718 180,290 73,390 $ 373,398 2017 $ 29,226 126,703 (11,666) 68,924 12,046 $ 225,233 369,365 (158,899) $ 435,699 $ 57,296 14,883 41,893 5,024 $ 119,096 215,797 100,806 $ 435,699 (7,682) 59,794 19,723 $ 221,515 406,069 (188,027) $ 439,557 $ 40,989 4,538 50,394 5,574 $ 101,495 230,271 107,791 $ 439,557 2019 $ 32,064 144,809 (13,306) 97,654 23,783 $ 285,004 499,426 (228,107) $ 556,323 $ 51,424 16,932 77,762 6,079 $ 152,197 263,058 141,068 $ 556,323 Sales Returns and allowances Cost of sales Gross margin Depreciation expense Interest expense Salaries and wages Accounting and legal Administration expense Other expense Total expense Net income Cash flow from operations (adjustments to net income) Depreciation Decrease (increase) in receivables Decrease (increase) in inventory Decrease (increase) in other current assets 2014 $771,580 2015 $728,878 39,179 36,445 476,308 443,698 $256,093 $248,735 $ 29,155 $ 27,538 19,637 DAVIDSON YACHTS COMPANY Comparative Statement of Income and Operating Cash Flow For the Years Ended December 31 18,677 460,415 $279,931 $ 29,530 2017 $933,478 46,798 548,178 $338,502 $ 35,287 2018 768,610 2019 952,857 33,687 48,180 532,997 $371,680 456,069 $278,854 $ 29,208 24,969 $ 40,160 29,073 2016 $781,480 41,134 21,078 21,555 82,003 73,744 77,926 95,844 92,983 101,527 9,704 9,986 9,403 11,914 13, 188 11,460 79,746 75,314 80,773 96,549 88,075 97,521 12,710 19,007 15,843 $231,995 $225,226 $234,553 $284,132 $ 24,098 $ 23,509 Increase (decrease) in current liabilities $ 27,538 (3,167) (21,855) (1,080) (8,600) $ 16,345 $ 45,378 $ 54,370 $ 29,530 (10,911) (5,088) 3,790 (34,250) $ 28,449 $ 35,287 (10,398) (6,172) (2,062) (622) $ 70,403 19,014 $267,437 $ 11,417 $ 29,208 17,531 9,130 (7,677) (17,601) $ 42,008 22,742 $302,483 $ 69,197 $ 40,160 (33,997) (37,860) (4,060) 50,702 $ 84,142 22,983